Netflix (NFLX) Shuts Down Indie Film Unit

Netflix (NFLX) is shutting down a unit that invested in low-budget films and documentaries intended to appeal to Netflix customers, according to Bloomberg.

The unit, called Red Envelope Entertainment, invested in more than 100 films since it was launched in 2006, including "The Bituminous Coal Queens of Pennsylvania," a doc about a small-town beauty pageant produced by Patricia Heaton.

The idea was that since Netflix users tend to disproportionately rent critical favorites over blockbusters, Netflix would fund movies likely to appeal to its users. Netflix never disclosed financial results of the unit, which employed four people. The unit reported to Chief Content Officer Ted Sarandos, who is remaining with the company.